Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-02-16
CALIFORNIA LEGISLATURE.
TwENTY-sEyEN sEssIoN-FoRTY-
FOURTH DAY.
SENATE.

SENATE.
TUESDAY, February Is, 1887
The Senate met at 10 o clock A. NJ, the Prest
dent in the chair
COMMITTEE REPORTS.
Agricultural. B. 1854 do pass as amend
ed. Also, 5. b. 1856, relating to the destruction Of
coyotes; no recommendation.
Judiciary-S b. 343, amending the Political
Code relating to trademarks; do pass. Also, a.
B. 46 relating to licenses; no recommendation
Also, S. B. Jag, relating 10 stamping manufact-
ured articles; do pass. Also, s. b. 376, relating
10 fees OF sherifts for keeping property; do pass
Attaches and Contingent Expenses-In favor
of allowing Luke Cavanaugh $50 50 for short
hand services to Committee on Claims: adopted
Also, allowing J. w. Wilcox SIS 50 for mileage
in subpenaing Witness adopted. Also, allowing
SIS to John A. Carroll for services as reporter to
State Prison Committee; adopted. Also. allowing
the members of the Committee on Education
SIS so each for mileage to Oakland, Berkeley and
San Jose; adopted. Also, allowing the Commit
tee on Harbor River and Coast Defenses sic sc
each as mileage; adopted. Also, allowing SeS &C
mileage each to the members of the Public
Buildings Committee Also, allowing $3.50 10 tc
j. C. Mulligan for services as reporter to the
Committee on Claims; adopted.
Committee on Claims-Senate bills Nos. EOS
246 2i9 and 305, without recommendation Also
S. B. 2SS, allowing Mr.. Miles $50, 4l9 40 on hi:
Prison; do pass. Also, s. B. 49, allowing claim:
of John L. Cook and William Gutenberger fol
the loss of tools at the Folsom Prison; do moi
pass. Also, s. b. allowing claim of Wells, Fargo
Co, against the State Mining Bureau FOL
moneys advanced the State Mineralogist do MOI
pass
THE MULLAN CONTRACT.
The Committee on Education reported bach
Senate concurrent resolution No. g. resembling
contract alleged to have been made by the Leg
islature OF 1885, with Captain John Mullan tt
act as agent for the State to collect the five pei
cent. due the State on the net proceeds of sales
of public lands from the Government, recon-
mending that it does not pass. The committee
reported that no such contract could be found
in the statutes of 1885.
Wilson commended that the resolution passed
in 1SS5-while not referring to the said five pei
cent. due from the GoverDment-did embrace il
among other claims.
The matter was debated at some length by
Messrs. Clunie, Gesford, Wilson and Bowers
The latter said that if the State saw fit to make
a contract with u person, and then break 1t, the
State should pay the party for his loss.
Wilson said that, after consulting with a num-
Der OF Senators, he is satisfied there is consider
and therefore asked permission to withdraw it.
which was granted.
BILLS INTRODUCED.
By White-Amending the Civil Code, relating
to causes for divorce. Judiciary.
BY Spellacy-Relating to the manufacture OF
canned goods, and providing for the stamping
thereon of the date of canning. Judiciary.
By Wilson-Relating to the dismissal and
modification of injunctions. Judiciary.
RIPARIAN RIGHTS.
Special orders. B. g. repeating Section 1422
of Title VIII, of the CivilCode.
Crandall resumed his argument against the
committee amendment providing that the re-
peal shall not affect vested rights.
The amendment was adopted-ayes q, noes 6.
The bill was then passed to engrossment-
ayes 20, noes7.
THE INSURANCE FIGHT
The next special order was Clunie's S. B. so
amending Section Gle of the Political Code, re-
latlng to insurance companies.
Wilson moved to strike out the enacting
clause
Clunie took the floor in defense of the bill
and against the motion to strike out. He de.
nounced the system now in vogue of conduct
ing the insurance business of the State-the
banding together of corporations for the pur.
pose of compelling property-owners to pay ex-
orbltant rates of insurance. Agents are allowed
twenty-five per cent on policies issued, and sub
agents, or insurance brokers, get from fifteen to
twenty per cent, while the person who pays
the high rates demanded is not allowed any re-
bate whatever. The purpose of his bill was to
compel these bloated corporations to conduct
their business as other kinds of business are
conducted There should be competition in
risks for the benefit of the insured. These for
eiSn companies, that have grown rich at the ex-
pense of the people, and are daily growing more
and more opulent, should be compelled to do
something for the State. Owning and amassing
great wealth, flched from the people, they pay
only from one dollar to ten dollars per year
taxes toward the support of the State Govern
ment. The Senator spoke ut considerable length
against the system of conducting the insurance
business of the State.
Pending further debate the morning session
expired.
Afternoon Session.
On reassembling Clunie resumed his argu-
ment. He called attention to the fact that the
Legislature exercised the right to regulate gas
and water corporations, and there was no rea-
son why it should not also regulate the opera
tions of insurance companies. If the matter
were left to the people of the State he was GER
tain that they would vote overwhelmingly in
favor OF his bill No unreasonable restrictions
were proposed upon insurance companies. They
were merely asked to conduct their business on
the same equitable basis thatis eXacted of other
corporations. The combined capital of the for
eign insurance companies in this State amounts
to more than four hundred million dollar,
and they constitute power that should be con-
trolled in the interest of the people. He was as
tonished and amazed at the opposition mani
tested against $50 reasonable proposition. But
he recognized the fact that upward of four hun
dred million dollars of capital pad combined to
defeat any bill that would serve to break the
grinding monopoly under which the people
were suffering.
McCudden of solano spoke briefly in opposi-
ton to the bill.
Rose said he had been requested by the Board
of Trade of Los Angeles to oppose The bill. He
not do so. There are some things he could
never do-he cannot go against his honest con
victions of right and justice. He favored fair
competit ION in the insurance business as it is a
matter that deeply concerns every individual
property owner in the State.
Gesford spoke at some length in support of the
bill. He quoted from the provisions of the COM
pact under which the insurance companies arc
operating, and denounced the system as q
greater usurpation of power than Was known i'll
the days of Nero or Henry VIII.
Dray said he had yet to hear any complaint
from the people of his county against the
alleged insurance monopoly If any oppres-
sion existed it was very strange that the policy
holders of Sacramento had not made the dis
covery. The alleged evil is one that, IL seemed
to him, had been discovered alone within the
Senate chamber.
Wilson said there are two sides to every ques-
tion. The bill under discussion embodied a
short-sighted policy. Only insurance com
panies that have brought foreign capital into
the State Tor the uses of the State have been
singled out for oppression. Insurance compacts
exist in every country, and as far back as 1916,
compacts of this kind were formed in this
country. In buying future contingency one
wants to purchase IL from a solvent company.
Without this compact the insurance company
becomes a gambler; and when a great contia-
grafton comes it is swept cut of existence, and
the policy; holders ruined. An open-rate war
would be disastrous to the property owners. The
foreign insurance companies could exist here
for years without making a cent of profit. and
swamped.
THE speech of Mr. Wilson will be found in full
on the first page of this ISSUE.
Clunie replied at some length to Wilson, and
went over portion of the ground before COW
cred. adding some new arguments in defeIse of
hiss bill.
Bowers spoke against the bill. arguing that
it was not demanded by the people, whose secu-
rites were better protected under the present
system.
Steele said the present compact is in the in
terest of low rates of insurance and perfect in
demnity for the insured.
Wilson replied to Clunie. denying that he was
in favor of combinations to increase rates. He
was, however in favor of q compact that would
equalize rates.
ton being demanded, Clunie asked that it go
over another day, in order that certain absent
Senators might be present. Objected to-
The roll was called on the motion to strike
out, as follows:
Ayes-Bowers Briceland, Byrnes, Conklin,
Carthy, Mcdonald, Meaney. Murphy, Patterson,
Pinder, Spellacy, Steele, Sullivan. Vrooman.
Wilson-20.
Noes-Abbott, Boegs, Chandler. Clunie, Gram
dali, Dixon, Gesford, Haynes, Hinshaw. Lang
ford McCudden, Moffitt, Rose, Roth, White-15.
Clunie (having changed his vote from no to
aye) gave notice of a motion to reconsider.
EDUCATIONAL BILL
Senate constitutional amendment No. 5, pro-
posing an amendment to Section of Article TX.
of the Constitution, relating TO Boards of Educa-
ton and examination of teachers in ineorpo-
rated cities, was taken up and unanimously
adopted
on THIRD READING.
S. B. 1872, appropriating sos 900 for the support
of the Industrial Home of Mechanical Trades
for the Adult Blind. Read third time and passed.